RUNNING HEADER: CAPSTONE PROJECT Essay.

RUNNING HEADER: CAPSTONE PROJECT Essay.

 

Deliverable One

Strategy Development

The fast food industry is one of the fastest growing industries globally, not just in the US, with statistics indicating that the industry is growing faster than the US economy. However, as the industry experiences growth, it has also been through a lot dynamism, and this means that all the players, including Chipotle have to be strategically placed and adaptive to remain relevant and competitive. It has been remarked over the last decade, the fast food industry has ‘seen an absolute explosion of diversity in both restaurant concepts and menu choices’ (Robicheaux et al., 2016). It is an explosion necessitated by a need to serve the changing tastes and preferences of the consumers and a need to remain relevant and competitive in a business environment that is bent on appealing to a liberal market. The idea being propagated is that Chipotle needs to be at the forefront of seeking to have a coherent, workable and flexible strategy to position itself as the ideal and preferred place for the consumer’s preferences.RUNNING HEADER: CAPSTONE PROJECT Essay.

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At the heart of the fast food industry is being in constant communication with the consumers. As has been remarked in the case, Chipotle has been trying to diversify this strategy by ensuring that the consumers are involved in the preparation of their foods. The inclination is that the company needs to diversify the channels through which it keeps in touch with the consumers. As such, the idea is the need to make sure there is response to any dynamism to the needs of the consumers, and most importantly, there is an ability to respond to any concerns or reservations over what is offered by the restaurant. The premise behind constant communication is the need to develop a marketing and advertising strategy, which all are at the heart of business growth. The ability to model what is otherwise a limited menu of most fast food restaurants is that they should be able to engage in market research to ensure that the consumers are given priority in the configuration of the services and products provided by the restaurants. With the statistical indications showing that up to 50 million Americans daily use the fast food services, there is immense insight that can be gained from such a consumer base. The leadership of Chipotle needs to have mechanisms which would help consolidate all the feedback from the customers, and this should be a strategy that would help in keeping the company at the helm of convenience, hence drawing more consumers.

The other strategy that Chipotle needs to adapt is having collectibles, especially in a world characterized by digital platforms, and a need to appear, or even be liberal. The inclination is collectibles can create a correlation to the figures which people try to form a connection with. For instance, the world is currently watching the World Cup in Russia, and one of the ways through which fast food industries in Russia have capitalized on is making pizzas and cakes with images of some of the popular figures participating in the event. The ideology behind such collectibles is that they help drive the sales by appealing to the aspects which the people relate to, and this implies that the Chipotle management needs to personalize some of the meals offered, as a way of driving sales and increasing the attachment with the consumers. In some instances, the collectibles are usually in series, and this can entice the consumers to keep coming back until they have exhausted all the figures associated with the themes chosen. The company, if operation costs allow, can even set a threshold upon which a consumer is given a free item for attaining a particular number of collectibles, and this helps to keep the customers motivated.RUNNING HEADER: CAPSTONE PROJECT Essay.

Market segmentation is one of the emerging dynamics in most of the businesses. It refers to the “process of identifying key buying groups that patronize your restaurant” (Sadi, 2014) by looking at aspects such as demographics, household size and income. Its inclination is that with such information, Chipotle can seek to tailor the services and products depending to the needs and preferences of such market segments. It means that with most of the customers who frequent Chipotle being middle and low income earners, the segmentation can help to continue being relevant and serving these groups while reflecting the conditions that the people face. It needs to be remembered that one of the aspects that shape the ability of any company to be relevant is its ability to have a clear way of identifying the products and services offered to be offered to the market, and this arises from a need to serve the needs of the consumer base. It has been remarked that market segmentation should show “If potential customers are limited to one gender or another, a certain income level, and/or ethnicity, and fall within certain generational age” (Gilbert et al., 2004) and this shows how such similarities or differences influence the uptake of the services and products offered at Chipotle. However, the market segmentation should then shift to making sure there is an immediate appeal to the market demographics, and this is what Chipotle should seek to determine.

Lastly, Chipotle has been known because of its tendency to offer “a more upscale dining environment and food quality, along with higher prices, but in the familiar, convenient limited service format of fast food” (Robicheaux et al., 2016). While this trend had been tipped to fail at first, it turned out to be a masterstroke since not only did it challenge the prevailing trends at the time but also helped set apart Chipotle from its competitors. The inclination being made is that Chipotle has been successful before in challenging dominant marketing strategies, and it needs a step further. One of the ways to retain its customers is to have a loyalty program, such as the use of food cards. It has been one of the most successful trends deployed by retailers such as Walmart, and it has been cited as one of the reasons why people have remained faithful to some brands. Free or complementary drinks has been one of the most popular services offered by most of the restaurants, and Chipotle needs to have such a strategy in place.RUNNING HEADER: CAPSTONE PROJECT Essay.

Consequently, any strategy needs to be alive to the dynamism of the environmental business, and a balance of the operation costs. Chipotle is a public company, and this means that there are stakeholders who look up to the company for profits, and have a valid expectation from their investments. Thus, as the CEO of the company, any strategy needs to have a middle ground due to such competing interests. All these strategies need to reflect other factors such as environmental sustainability and corporate social responsibility, and the success of the strategies lie in serving all these interests, and finding a way to maintain an identity for the company.RUNNING HEADER: CAPSTONE PROJECT Essay.

 

 

Deliverable two

Innovation and Competitive Analysis

 

Segment	Market Share
Hamburger-focused restaurants	30%+
Pizza parlors	15%
Sandwich shops	12%
Chicken restaurants	8%
Mexican restaurants	7%

 

The opening statistics help to give an insight on the type of services that Chipotle offers in the US market. One of the aspects that needs to be remembered from the statistics is that Chipotle mainly deals in the Mexican segment, and increasing its market share is a daunting task. The fast food industry is one of the most dominant in the US, accounting for more than 50% of the market share of all restaurant sales. The fast food industry is consistently known for their simplicity in appearance, and a need to make sure the consumers feel accommodated in the settings. The menus are “the same from location to location, and consumers enjoy a recognizable, familiar experience no matter where they are, with a dependable level of quality” (Jekanowski, 1999). The meals are also generally cheap, and most of them have signature aspects, such as the complementary drinks or services. The need to show all these traits arises from a need to show why Chipotle needs to be at the top, not just from an ordinary setting, but also from the need to diversify and stand out in an industry that elegance is not adequate to remain attractive.

According to the statistics given, Chipotle lags behinds other brands such as Taco and McDonalds. However, as research also indicates, these two brands have mainly their traditions to rely on, which is one of the factors that have made them to become household names in the American nation. The needs to remain competitive from the perspective of Chipotle needs to be seen from one of the major revolutions that the brand caused: “proving that quality ingredients and speedy service can go hand-in-hand” (Dawar& Frost, 1999). It has been one of the major selling points of Chipotle, and one that the company needs to continue diversifying, and giving room for its growth and development. The need to be competitive is a natural survival instinct for any business, and the actions of Chipotle’s competitors is one that offers room for an objective, and empirical analysis.

After years of declining sales, McDonalds and Taco Bell has seen an upscale of its sale numbers because of its inclusion of the breakfast menu on its services and products. The point being made is that the traditional view of focusing on dinners and lunches is one that has not been driving growth in most of the companies. Chipotle has not come with a countering step, and this has seen a slowed growth in its sales, coupled with other challenges that will be highlighted later. Further trends in the fast food industry indicate “hamburgers segment dominated the industry owing to factors such as availability of higher product variants and consumer preference. Whereas, sandwiches segment is expected to exhibit fastest growth rate over the forecast period” (Ehmling, 2018). It is an insight that Chipotle can learn from, especially the popularity of the burgers, which has been based on an ability of most Americans to relate to its origin. The inclination is that with such a heritage, the restaurants that deal in burgers are able to charge higher prices without risking the loss of any consumers. Is this strategy possible with Chipotle? There remains to be seen a lot of such inclinations, starting with the obvious reason; fast foods are developed from the premise of giving quality products and services at relatively lower prices. There is little room for error; if any.RUNNING HEADER: CAPSTONE PROJECT Essay.

Comparative advantage is one of the main selling points of Chipotle. It means that there are some actions such as use of particular products or ingredients that can lead to increased sales, because of the ability to appeal to a particular group of people. For instance, Chipotle has been credited for its insistence on using organic materials and the ability to create an environmental sustainability framework which has built a rapport with people who adhere to such values. Another comparative advantage is its ability to use fresh products, which means most of the consumers are able to see how such foods are prepared and even get to give individualized input on how such services or products are prepared. An important selling point of the hamburgers is that it has been able to respond to the change of the consumers’ preferences and demands, and use of organic products, which has led to more businesses taking up the product, coupled with the use of organic products. All these aspects are of value to Chipotle, and it needs to try and integrate, with a need to retain its authenticity, such traits to its business model.RUNNING HEADER: CAPSTONE PROJECT Essay.

The cultural evolution is also a driving factor that Chipotle need not overlook. The cultural paradigm has been redefined by “rising incomes, longer workdays, and a growing tendency for both spouses to hold full-time jobs are widely credited for the rise in away from-home expenditures of all types” (Ehmling, 2018) which has been one of the reasons why the fast food industry has been on an upward trajectory. The fast food industry, as a retaliation, is characterized by the efficiency of the services offed, a rapid consumer turnover and take-out sales. The industry is also dominated by franchise brands, which means that there is a consistency in the quality of the products and the menus offered. One of the frontiers for increased competition in the fast food industry is the emergence of supermarkets which are incorporating the same traits, with a need to offer a comprehensiveness, which is another cultural evolution trait. The people are able to engage in other activities such as play and shopping while still dining. As such, while Chipotle does not have any plans, or has not given any hint to this end, to increase its activities and services to other aspects, it needs to try and operate in environments that can maximize such consumer needs. In its annual report in 1994, McDonalds, which is a fierce competitor to Chipotle says that one of its goals is to “have a site wherever people live, work, shop, play, or gather. Our Convenience Strategy is to monitor the changing lifestyle of consumers and intercept them at every turn. As we expand customer convenience, we gain market share” (Jekanowski, 1999). It should be a shared theme at Chipotle, and the management needs to have a strategy upon which such goals can be applied in the wider operation of the restaurant.

The future trends that have been seen to define the fast food industry is the need to reflect the changing health needs of the consumers. For instance, there has been the diversification of menus, use of low fat products and showing value for the meals. Chipotle has been promoting its two major selling points: use of organic products and its healthy cooking techniques to appeal to the consumers. While these steps are commendable, the company needs to try and incorporate more menus, with the Asian, Chinese and Japanese cuisines being one of the growing trends in the fast food industry (Schaffmeister& Haller, 2018). There have been emerging challenges such as the increased labor costs, high prices for the ingredients and a dynamic consumer base, coupled with a challenge of maintaining franchise relationships, all these need to be remodeled not to affect the business strategy of the restaurant. What can be done is that while the company can continue relying on its customer loyalty programs and its innovative use of fresh and organic products, it needs to be cognizant to other challenges that determine the profitability of the businesses. The diversification of its menu is one of the surest ways which has been tipped will make the difference in an industry which saturation is an everyday reality, and so is the ability of any brand, including Chipotle to become obsolete.

The idea of competition is one that Chipotle and its management have to contend with, just like any other business. However, the restaurant has built a reputation of challenging the traditions, and this is why it has seen tremendous growth for the time it has been in existence. Can the company sustain such momentum in the long-term? The answer can be either way, but an ability to recognize and respond to the changing consumer preferences is the main step that will help separate Chipotle from its competitors, though the vice versa still holds.

 

 

 

 

 

 

 

 

Deliverable Three

Exploiting Innovation

Chipotle is an innovation by itself, developed from a need to serve consumers who had been alienated because of the market structure. The ‘fast-casual’ approach, which conflicted with the fast food approach is at the heart of the growth of the company. What sets the company apart? The CEO of the company is on record saying while starting the company “people told us the food was too expensive and the menu was too limited. Neither turned out to be true” (Jennings, 2013). It implies that while seeking to reinvent itself, the company started on an innovative path, which allowed it to manipulate rather than conform to the prevailing ideology. From a subjective, yet valid point of view, the necessity of innovation arises from a need to deal with challenges and remain competitive. The secret to the fast food industry is that one needs to adhere to three major actions to get any profits: “reduced prices, expanded menus, and raised operational efficiencies” (Morden, 2016). At the time of starting Chipotle, the most popular brand at the time was Taco, Bell, which had been giving a Mexican cuisine at relatively cheap prices. However, Chipotle moved against the grain by deciding to “introduce a higher quality of Mexican fare to a broader audience by defining a different value equation for fast food. All the food would be freshly prepared. The ingredients would be top quality. And the restaurants themselves would be beautiful, all wood and metal, offering a dining experience several notches above fast-food Formica counters and fluorescent lighting” (Dupont, 2014). The idea being that, innovation was seen to conflict with the prevailing notion of minimizing labor costs and limiting the spoilage of the products. The company also did not seek to offer minimum wage, it settled on giving higher wages, but with a caveat. All its employees had to be self-driven, easy to interact with and adhering to the standards that had been set. Interestingly, the company spends more on ingredients than on its payroll, which is against the established tenets in the food industry (Tsyhankova et al., 2012). One particular example comes to mind. When the CEO of Chipotle tasted the pork burrito and did not like it, he decided to source for higher quality pork and raise the price of the burrito. Surprisingly, the sales of the burrito increased by a whopping 8%, which serves to show why the company has been credited for its incessant innovation, and its ability to challenge the conventional modes of operation, and still remain fruitful and in touch with the consumer needs.RUNNING HEADER: CAPSTONE PROJECT Essay.

An emerging innovation of the company is its use of the organic meat, which augurs well with a populace who share in the ideology of not using chemicals in raising animals. It has been one of the aspects that differentiate Chipotle from its competitors, and why the brand has been able to draw more and more people, especially in an era in which health has been a national and global concern. What has passed most people, including its competitors is that Chipotle does not engage in marketing campaigns as the company believes that once the food safety is guaranteed, the sales will keep on increasing. It is a trend that has paid dividends, at least for the moment. As has been mentioned above, the company has realized that “colors can increase purchases and create a stronger fondness of searching” (Dupont, 2014) which is why it has consistently used similar designs for its spaces for its customers. The idea being that such familiarity has led to a customer loyalty which has led to retention of most of the customers. Another innovative approach utilized by the company is by exploiting the target audience, and this is mainly done through its outsourcing programs for the raw materials it uses. It means that the company has been using the word of mouth as its primary tool of marketing, and the regional consistency exhibited shows why the strategy has paid off, at least in most areas. The use of locally sourced ingredients has been one of the trends which most of the fast food industries are utilizing, and Chipotle has been at the helm of this innovation.

However, an interesting observation comes to mind. In the recent past, statistics indicate there has been an increase in the regionalized foods in most of the states, especially in California. It means that Chipotle needs to try and look beyond its Mexican cuisine offers, which, though successful, may not survive the onslaught of the regionalized menus. For instance, in California, there has been a surge in the sale of Hawaiian foods, which is surprising. It has also been necessitated by a generation that does not seek conformity, rather exhilaration. For example, sriracha is not an ingredient found in most menus, yet the millennial generation has been found to have a fondness for the product. What this means is that Chipotle needs to try and look beyond its traditions, and to understand the market dynamics, and act appropriately. As such, it needs to be on the lookout, and most importantly, to be flexible in integrating some of the emerging trends in the organizational behavior.

An emerging problem with Chipotle is its lack of franchise services, yet it has reached a point at which it can be said to have matured, as a company. It means that the company needs to keep injecting more funds into its operations, yet it may not have many platforms to do so. The company went public a couple of years ago, but this has not seen an organizational revolution to keep it ahead of its competitors. The company has only increased its number of stores, and this has led to a problem with adherence to the legal and organizational norms expected of such brands. The company is battling with humiliating escapades of gender discrimination, and a health scandal following the breaking out of the E. coli, which was traced to the restaurant. These problems are not limited to Chipotle, but they ruin the reputation and consumer confidence. The company thus needs to have a centralized framework upon which all its services can be dealt with, and increase its vigilance to matters of health. It is humiliating when the company admits to assigning four health officials to a market share larger than the total population of Philadelphia. Chipotle needs to go one further if it needs to continue being at the top of the fast casual industry.

The company has also maintained a good and faithful relationship with its suppliers, and this has been one of the major ways through which it has faced very little problems in its expansion plans. The relationship with suppliers and other stakeholders is supposed to improve to corporate image, and this is exactly what Chipotle has been able to achieve in its plans. It has served to retaliate its commitment to the people with whom it works with, and endeared it further to new markets. Furthermore, with the increased costs of living, most of the competitors have been forced to raise their labor costs, which has eaten into the profitability of these companies. As mentioned earlier, Chipotle gives higher salaries compared to its competitors, which means that it has not been affected by such economic changes. Lastly, the prevailing practice is “most of the companies step up product introductions so strong by putting efforts to increase an advertising level, and expand the channels of distribution internationally and this strengthens the entry barrier by raising economies of scale and making access to distribution channels more difficult” (Jennings, 2013). However, Chipotle has used product differentiation and ethical considerations for any price increases, and this has been one of the ways through which most of its price adjustments have not been met with any resistance in its areas of operation.

Consequently, if one would take a summative approach to the innovation exploitation, one would also need to recognize the use of social media and technology as a way of reducing operational costs. In most cases, these aspects remain almost homogenous in most companies in the fast casual industry, which means that they do not offer any tangible comparative advantage to Chipotle. Therefore, the identified factors, especially the use of specific physical traits and fresh organic products have been at the heart of innovation by Chipotle, and this has been why the company has experienced an explosion in terms of growth and profitability though there is room for further adjustments.

 

Deliverable Four

Organization’s Response to Change

 

The main problem pressing Chipotle has been raised because of its health safety concerns, which has led to simmering of conflicts with Center for Consumer Freedom, a nonprofit organization based in Washington. Look at the following image so as to have an insight on the extent of the problem the company is facing.RUNNING HEADER: CAPSTONE PROJECT Essay.

 

The image depicted above is one of the myriad of issues that Chipotle Mexican Grill has been facing. The company has not only been embroiled in the American debate on the increased cases of obesity, it has also seen a loss of consumer confidence and trustworthiness since it was found culpable for the E. coli outbreak in 2015. The statistics indicate that only 47.2% of the total American population believe that Chipotle is above average when it comes to the handling of food. The dwindling of the consumer sales point to the larger problem, and this has been one source of investors’ concern as most argue that the company could be losing the very allure that has helped drive its sales forward. Interestingly, the company does not need to look further to find a way to the hearts of its consumers, it needs to look at the lessons learned by Coca-Cola, which is one of the companies that has overcome similar challenges, albeit differently.

The Coca-Cola case study

Coca-Cola was accused as having been one of the major causes of the increased obesity in America, with up to four male adults out of ten being obese. With such accusations, coupled with an increased focus on consumer liberation, it seemed like the company was in its way to damnation, yet this was a major learning curve for the company. The company started to diversify its products, and turned to the organic production. Furthermore, the company also started carrying out intensive marketing campaigns through which it highlighted the ingredients it used in the manufacture of its products, which gave the consumers information to its products. It has been a strategy that has started paying dividends with the company peaking up over time. Herein lies one of the major lessons through which Chipotle can learn how to respond to diversity.RUNNING HEADER: CAPSTONE PROJECT Essay.

The statistics show a 29.7% plunge in most of the Chipotle restaurants, which means that the company is not just facing a problem because of its safety concerns, but also because of its organizational culture. For instance, while Chipotle was popular because of its ability to be efficient while serving its consumers, long lines have become a norm in its burrito lines. It has also been remarked that the tables which the consumers are expected to eat are messy, and customer care, which has been the selling point of the company has never been any worse. It means that the CEO of the company needs to find a way to help address some of the fundamental problems the company currently faces, especially the emerging long lines for its burritos. One of the explanations offered is that the company suffered a setback when one of its main suppliers violated the standards set by the company on production by using chemicals in the production of pork. The puzzling thing is that the company took thirteen months to restore the pork, which led to most of the consumers feeling frustrated, and moving away from the company. Therefore, the CEO needs to have a framework through which he is able to find reliable suppliers, and be willing to go an extra mile in meeting the needs of the consumers. While the CEO does not need to drop the standards set by the company on supply, it is not advisable to take such a long time in addressing a supply hitch. The CEO needs to have a supplier base that is dependable, and most importantly, one which is able to be consistent to the mission of the company to provide ‘food with integrity’.

However, a further problem lies to the recovery journey of Chipotle. There has been research conducted that showed that “visits to fast-casual restaurants declined in the most recent quarter for the first time since it began tracking them in 2004” (López, 2016). It is not a problem that is being experienced by Chipotle but rather the entire restaurant industry, which means that there has been a downturn in the uptake of investments in the restaurant industry. With such a bleak outlook, it would be challenging to attract new investments, which does not make the plans by the company to increase its menu provisions any easier, which implies that the company needs to have a different approach when it comes to implementing the raising capital for the required strategies. It is telling that as one of the ways through which the company is focusing on its change strategy, one of the co-executive has been asked to step down, which will reduce costs and have a single person steering the change process. It is a way through which there is a centralization of the strategies, and one center of power, which make it convenient to have control and increase the decision making process at the company.RUNNING HEADER: CAPSTONE PROJECT Essay.

There is also a need to try and diversify the training programs that are offered by the company. By its own admission, Chipotle has attributed its decreasing its dwindling customer care satisfaction down to the training programs which only equip the employees with soft skills to deal with other dynamics of the work. The management has argued that “Employees, they theorize, can do better at keeping up with demand if they’re given better instruction on how to do so. Same goes for those messy tables: They are hopeful that will get better as they encourage workers to turn more attention to the dining room instead of just the kitchen” (Fedenia&Hirschey, 2015). It is a solution that will require the management to have a way through which training can emphasize on the required traits, while not compromising the quality of the food and services offered by the restaurants. One of the ways through which the CEO can increase this is by having an increased employability, with a change in the organizational policy of having an annual day of recruitment. While the one day set aside by the company to recruit has been able to remain efficient so far, the dynamics of the consumers require the company to keep updating its employees’ work operations.

Competition has been one of the other factor that has seen Chipotle having dwindling sales. For instance, Taco Bell opened a new venture named ‘Cantina Bell’ which is a replica of the services and products offered by Chipotle. There is not much that Chipotle can do to control the actions of its competitors but there is plenty that it can do to protect its brand. One of the strategies is the diversification of its marketing strategy. The company thus needs to seek to paint its services and products in a particular light, to form and maintain an identity with its customers. The inclination is that the company needs to fight by the rules of the business environment, and standing up for its services and products is one of the ways through which it can show it is able to protect its brand from further dilution by its competitors (Grant, 2016). The CEO of the company can even seek to diversify its menus, to increase innovativeness of the products and services already offered. The point is that; there is a need to make sure that the Chipotle brand is not affected by the actions of its competitors.

Digital innovation has been one of the areas that Chipotle can tap to increase its sales. With 86% of the total US population having a daily online presence, the digital platforms provide a new frontier through which Chipotle can reach out to potential consumers. Currently, the company boasts of 8.6% sales which are done through the digital platforms, which serves to highlight the potential of the sites. For instance, the mobile ordering across the US has been consistently rising by 50%, which means that Chipotle needs to diversify the use of mobile phones to encourage the consumers to make orders (Stevens& Lunsford, 2014). It is also one of the ways through which the company can deal with the long lines that have characterized the company over time. The idea is having a way through which the digital innovation can increase the convenience and efficiency of Chipotle and its operations. It is also telling that the company further seeks to have a loyalty program whereby for every four meals ordered, one will be getting a free meal on the fifth time. These are positive steps that need to be lauded, but which require the company to advertise such steps to the consumer base, and which all the same; will be able to attract and retain consumers. The IT programs require an additional $15 million to streamline its digital platforms, which means that there should be additional funds raised from the public or investors (Blanchard &DeSarbo, 2018). How can this be possible with the skepticism facing the restaurant industry?

The company estimates that it will open 30 new branches in 2018, and this shows its confidence in a return to normalcy in the near future. Therefore, the company needs to communicate such optimism to potential investors, with validity of empirical market research, as a way of raising the funds. The company can also call for a public sale and raise funds from the public as it is a public company. Furthermore, the company can also engage in other activities such as reducing the levels of leadership, which has pushed up the payroll, while creating a bureaucratic situation. It is also telling that the company has decided to have a centralized training place in Denver, which means that its employees will benefit from a centralized environment that allows for coherent training, emphasis on service delivery and hospitality to the customers.RUNNING HEADER: CAPSTONE PROJECT Essay.

The CEO also needs to be at the heart of the change process. The company plans to expand, and while no one questions the validity of its steps, one can argue how the company plans to get the suppliers of its new branches. The company may consider forming partnerships with large scale producers of the ingredients it uses, which will make sure that it is able to monitor the production processes, to avoid any serious disruption. The restaurant industry has also been explained to be experiencing “a tightening labor market due to the strengthening economy and growing demand for restaurant meals” (Ragas & Roberts, 2009). It means that the company is not safe from the poaching of employees by its competitors, yet the consumers are likely to keep increasing, at least for the moment. The CEO needs to have a framework through which employees are duly taken care of, and their interests are considered as a way of promoting retention. One of the notable changes is that the company has strengthened its paid sick-leave, which was a major concern for most of the employees. The actions which help improve the employees’ welfare are a necessary step in the right direction.

Lastly, the CEO needs to be alive to the dynamics of the consumers, and the diversification of the menus is one of the ways that one can show such understanding. It is therefore necessary the CEO keeps engaging in market research, reaching out to consumer feedback and most importantly, be accessible to all the consumers to act on their suggestions. Encouraging positive interactions between consumers and employees is another positive step, and this needs to be cultivated. Therefore, the CEO needs to focus on the strengths of the company, while being alive to the dynamism of the business environment, and acting appropriately.RUNNING HEADER: CAPSTONE PROJECT Essay.